Comments on: How Much Can You Afford?

By: MasterPo

MasterPo — Wed, 25 Mar 2009 22:51:26 +0000

Also keep in mind: Costs ALWAYS go UP!! Never down!

So whatever you’re paying the first year in your house for utilities, insurance, property tax (that’s a factor often over looked) you can bet it will go up as the years go on.

By: ryan

ryan — Wed, 25 Mar 2009 11:23:27 +0000

the important thing to remember is not to worry so much about what exactly can you afford, just how much you can spend and still be considered “responsible” or “frugal”; but rather how big of a safety margin can you build for yourself and your family.

From month-to-month, safety margin is pretty boring. Year to year it compounds pretty quickly, and then all of a sudden you realize that you could responsibly spend a heck of a lot more.

By: goldenrail

goldenrail — Wed, 25 Mar 2009 03:48:50 +0000

I’m a little nervous. My rent is very close to what’s listed there. And I’d easily believe that I spend that much on clothing and travel in a year (in my defense, I’m usually traveling for career related things). However, I’m hoping I somehow balance out by not having any car payments and in no way spending that much on entertainment. Out of curiosity, where’s ‘dining in’ and utility bills?

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 25 Mar 2009 03:41:58 +0000

HomeFree – I’ll take “prudent and wise.” I just hope the wife agrees with you.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 25 Mar 2009 03:40:55 +0000

MGL: 20/25 is going real old school. I like it but there won’t be many loans made with those standards!

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 25 Mar 2009 03:39:46 +0000

Rick: I’ve said it before and I will say it again: None of these mortgage bailout plans can help a person who has no income. That problem has always existed and always will exist. The only thing that can really save an unemployed homeowner is a substantial emergency fund and marketable job skills.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 25 Mar 2009 03:34:11 +0000

TMN – I agree – I would love to see how the experts arrived at these numbers.